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The Dangote oil refinery has announced plans to expand its operations, increase production capacity and create additional job opportunities as it works to increase production to 1.4 million barrels per day (bpd) by 2029.
According to Dangote Industries Limited officials, the refinery, located in Ibeju-Lekki, Lagos State, currently operates at around 700,000 barrels per day.
Expansion project underway
Group vice president of oil, gas and fertilizer at Dangote Industries Ltd., Devakumar Edwin, revealed the expansion plans during a media tour of the facility on Friday.
Edwin said engineering work on the expansion had made significant progress, with most of the major equipment already ordered and key contracts awarded.
He explained that the company expects the project to be completed within three years, although completion could occur sooner depending on progress.
“Our goal is three years and we could probably go even faster,” Edwin said.
The workforce in refineries is increasing
As part of the expansion program, the refinery plans to increase its workforce.
Officials said growing operations would require more staff as additional manufacturing and petrochemical facilities are developed.
The refinery currently relies heavily on automation, with more than 70% of operations controlled via automated systems.
The cost of expansion is expected to be lower
Edwin said the second phase of expansion would cost less than initial construction because critical infrastructure already exists.
It listed existing facilities such as the refinery port, quarry, welding gas plant and developed land as factors that could reduce additional costs.
However, he noted that new petrochemical plants would increase overall spending.
Refinery designed for global crude oil supply
According to Edwin, the plant was designed to process different types of crude oil from various regions, including African crude and West Texas Intermediate (WTI) from the United States.
He said the flexibility would allow the refinery to reduce its reliance on a single source of crude oil.
“We designed it to have a broader range of crude oils that can be processed in the refinery,” he said.
Focus on the production of gasoline, diesel and aviation fuel
The Dangote refinery has been configured to produce products that meet Nigeria’s energy needs, with gasoline accounting for approximately 53% of production capacity.
Edwin said the plant was designed to ensure that approximately 95% of the production consists of high-value petroleum products such as: gasoline, diesel, aviation fuel.
The remaining production capacity consists mainly of industrial products.
Export market expansion
The Dangote refinery currently supplies petroleum products to both domestic and international markets.
Officials said the refinery exports products including gasoline, jet fuel and diesel to markets in the United States, Europe and other regions.
The expansion will also increase the production of petrochemical products such as: polypropylene, base oil, linear alkylbenzene.
Automation and operations
During the media tour, journalists visited different sections of the refinery, including: the main control room, the central laboratory, the storage facilities, the loading bays, the processing units.
The company explained that the high level of automation allows it to manage operations with fewer personnel in the processing areas.
Financing through IPO
The expansion program comes as Dangote Petroleum Refinery and Petrochemicals seeks to raise around ₦2.15 trillion through an ongoing initial public offering (IPO).
The company said proceeds from the offering would support its plans to increase production capacity.
